turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes & Forms (2024) on Mar 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

tntne2000
New Member

Been on SSDI for several years. I'm under 60. Old employer offered an early distribution of 401K. Does my disability exempt me from being taxed on the early withdrawal?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MinhT1
Employee Tax Expert

Been on SSDI for several years. I'm under 60. Old employer offered an early distribution of 401K. Does my disability exempt me from being taxed on the early withdrawal?

Being totally and permanently disabled is one of the exceptions to the early withdrawal penalty if you are under 59 1/2.

 

But your 401(k) distribution will be subject to income taxes.

 

Please read this TurboTax Help article for more information.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question